Guatemala’s Ministry of Economy (MINECO) signs memorandum of understanding to promote transparency, inclusion, and digitization in the country
Guatemala is a country that needs to advance in the digitalization of the economy in order to continue progressing, and this type of agreement opens the doors to promote this transformation. At the same time, it provides a great opportunity for the unbanked sector so that they can start using technology and formalize their businesses, thus providing faster and more secure support for their transactions. Not to mention that it will offer a great streamlining of governmental procedures, which is one of the projects that has been developed since the pandemic, as more and more people are looking to provide users with digital procedures.
It is necessary that countries can progress to a digital operation, which not only includes offering online government procedures, but also a digital economy, as it facilitates trade and development of countries, and gives way to new technologies to be part of the country more easily. As a consequence, other payment methods such as cryptocurrency and new technological alternatives that are emerging within the Fintech ecosystem could begin to be used.
Part of this digitization was the signing of a memorandum of understanding between the Ministry of Economy (MINECO) and Mastercard, with three main objectives: explore payment solutions that increase financial inclusion and formalization among the population, develop strategies for micro, small and medium-sized enterprises to promote payment ecosystems, and promote the simplification, streamlining and digitalization of administrative procedures that arose from the entry into force of the Law for the Simplification of Administrative Requirements and Procedures.
This agreement will become part of Mastercard’s Digital Country Partnership program and includes collaboration with Guatemala to include digital and financial inclusion initiatives for the government and the population. This agreement was signed for a term of six years, and its content establishes guidelines to promote economic development, formalization, and access to financing for small and medium-sized enterprises. Finally, it will also seek to boost the economy through the digitalization of local commerce.
María Fernanda Villagran
Associate
García & Bodán
Guatemala